Polkadot Price Prediction: DOT Price Sees 12% Rise if Buyers Hold this Key Support, But There’s More

Polkadot Price Prediction: In the daily time frame chart, the Polkadot price shows the formation of an inverted head and shoulder pattern. This famous trend reversal pattern is often spotted at the market bottom and offers early opportunities to go long. Amid the ongoing selling in the crypto market, the coin price is still shaping the third portion of the pattern, trying to sustain at higher chart levels. Here’s how this pattern may further influence the future trend of DOT prices.

Key Points:

• Completion of the inverted head and shoulder pattern could drive the DOT price 80% higher than the current price
• A potential bearish crossover between the 20-and-50-day EMA may prolong the current correction phase
• The 24-hour trading volume in the Polkadot coin is $165.5 Million, indicating a 49% gain.

Source-Tradingview

On April 18th, the Polkadot price turned down from the long-coming resistance trendline of an inverted head and shoulder and triggered a new correction phase. As a result, the coin price tumbled 16.9% to plunge to local support of $5.76-$5.66.

The negative sentiment in the market might have created this slight detour, but until the prices show sustainability above the $5.76 or $5.3 support, the bullish setup will remain intact. By the press time, the DOT price traded at the $5.9 mark but the lower price rejection candles observed in the last few days projects a higher possibility for price reversal.

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This potential reversal may push the price 12% higher to hit the aforementioned resistance trendline. Under the influence of this pattern, the buyers should eventually breach this dynamic resistance. 

In an ideal bullish scenario, a breakout above the trendline may set the DOT price for an 80% rally to hit $10.8.

Technical Analysis

Bollinger Band: the DOT price wavering at the lower band of the Bollinger band indicator increases the possibility of a bullish reversal.

RSI: The daily RSI slope took a sharp dive into the bearish territory indicating a negative sentiment in the market.

• Resistance levels- $6 and $6.6
• Support levels- $5.6 and $5.3